Frontier Communications 2014 Annual Report Download - page 67

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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
($ in thousands, except for per-share amounts)
2014 2013 2012
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,772,490 $4,761,576 $5,011,853
Operating expenses:
Network access expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465,395 431,073 441,588
Network related expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,118,427 1,083,555 1,133,692
Selling, general and administrative expenses . . . . . . . . . . 1,088,180 1,057,513 1,100,861
Depreciation and amortization. . . . . . . . . . . . . . . . . . . . . . . . . 1,138,942 1,169,500 1,266,807
Pension settlement costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 44,163 —
Acquisition and integration costs . . . . . . . . . . . . . . . . . . . . . . 141,605 9,652 81,737
Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,952,549 3,795,456 4,024,685
Gain on sale of Mohave partnership interest . . . . . . . . . . . . . . . — 14,601 —
Operating income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 819,941 980,721 987,168
Investment and other income, net . . . . . . . . . . . . . . . . . . . . . . . . . 38,996 9,177 20,132
Losses on early extinguishment of debt. . . . . . . . . . . . . . . . . . . . — 159,780 90,363
Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 695,500 667,398 687,985
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 163,437 162,720 228,952
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,544 47,242 75,638
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,893 115,478 153,314
Less: Income attributable to the noncontrolling interest in a
partnership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 2,643 16,678
Net income attributable to common shareholders of
Frontier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 132,893 $ 112,835 $ 136,636
Basic net income per common share attributable to
common shareholders of Frontier . . . . . . . . . . . . . . . . . . . . . . . $ 0.13 $ 0.11 $ 0.14
Diluted net income per common share attributable to
common shareholders of Frontier . . . . . . . . . . . . . . . . . . . . . . . $ 0.13 $ 0.11 $ 0.13
The accompanying Notes are an integral part of these Consolidated Financial Statements.
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